In the current scenario the market for surveillance is witnessing better growth and has created more opportunities for the Channel Partners. Product and Technology knowledge, skill set, appealing infrastructure and service oriented mind-set are the major factors which has led the Channel Partners to add Surveillance Range of products to their existing portfolio.
The surveillance market in India is in the midst of a significant upsurge and undergoing major technology advancements. The security industry is seeing trends in the increased use of video analytics, video resolution, and refined optics, making the future of video surveillance virtually endless in possibilities. Analog cameras’ market share is shrinking as customer is moving towards IP based surveillance solutions. Market is converging towards solution centric approach where customer wants to collaborate multiple solutions like intelligent functions, video management, and analytics on a single platform. According to 6Wresearch, the total market of video surveillance in India is estimated to reach around $500 million in 2016. Government & transportation sector accounts for majority of the revenue share, owing to increasing government IT security spending and projects. With the focus of government on digital India and smart city projects these sectors are expected to contribute maximum for the next six years. Other key growing sectors include- banking & financial, retail, and commercial offices. According to Gopal Pansari, Managing Director at Manzana, “Government and transportation vertical has generated majority of the market revenue owing to increasing spending and rising public infrastructure.”
Indian surveillance market
Today’s consumer is sensitive towards the operating cost involved in the overall solutions. They try to minimise the operating cost and demands are up for the products which consumes low bandwidth thus reducing the data consumption and storage cost. Customer also looks for excellent optics capability in the cameras which can be easily integrated with other platforms. Also, consumers are looking out for solutions which can be easily integrated with multiple platforms. The industry is not merely about a camera or software now. Consumers are expecting a comprehensive value offering which is a combination of hardware and solution.
With growing incidence of crime & untoward incidence is public, individuals/ organizations are keen on deploying solution that will provide a safe surrounding. Residences/ complexes, Retail, BFSI, Hospitality, Public transport authorities are looking at feasible options to meet the surveillance needs. Both Residents & Corporates have increased their security budgets in recent times & are investing in securing their premises. This is a clear indicator of the huge potential that IP Surveillance segments hold. Government and transportation vertical has generated majority of the market revenue owing to increasing spending and rising public infrastructure. Increasing penetration of video surveillance systems in hospitality and education has resulted in the emergence of commercial as a key growth vertical.
The Driving Force
The driving factors for the technology roadmap will be all pervasive, online and proactive solutions. As IP cameras become less expensive, more customers will incorporate them into varied applications. Major trend will be the integration of business intelligence software to the video surveillance system. Also, cloud based & mobile operated security solutions will play major role as trend setters in the surveillance business. Kaushal Kadakia Marketing Manager: IPVS, Matrix Comsec excerpts, “The major technologies that will influence the video surveillance market are video analytics like face recognition, people counting, traffic management and centralized management. The growth of video surveillance is bound to rise, especially with the lower costs of bandwidth and server helping in smooth and cost effective installation of centralized video surveillance systems.” This is a clear indicator of the huge potential that IP Surveillance segments hold. According to Raj Jadhav, VP –Solution Consulting, Technical Support & IT, D-Link (India), “Following the recent demand trends, there is a lot of traction for community and society surveillance which is largely contributing to the growth of surveillance market in India.”
The non-residential electronic security market in India witnessed fluctuating contributions in terms of revenue, nevertheless, the future of the India electronic security market is expected to be favourable on account of rapidly growing urban population, improved residential, commercial, industrial construction and public infrastructure, enabling the rise GDP of India. Sanjeev Gulati, Country Manager-India & SAARC at VIVOTEK says, “The rising awareness about benefits of the electronic security equipment amongst the Tier-I, Tier-II, and Tier-III cities of the country will encourage players in the electronic security market to expand their centers across the potential markets in India.”
Internet of Things is catching up as people are talking about it and also trying to see how analytics can get to the next level than just recognizing somebody’s face or a number plate. Today, products and solutions for face recognition, number plate recognition and thermal cameras are being used for city surveillance, in hospitality, manufacturing and infrastructure industry. Secondly, too much video is being generated and big data in analytics is also coming into the picture, and so compression is also going to the next level. Talking about the current shift from analog to IP – based security across all market segments, Sudhindra Holla, Country Manager, Axis Communications India & SAARC shares, “Small and medium-sized businesses (SMBs) are particularly benefiting from the modular, cost-effective and easy-to-deploy solutions available, these cameras have an efficient networking and storage approach and provide a sophisticated security system at an affordable price.”
Along with so many benefits, there are various roadblocks that vendors in surveillance industry face, one of them being the lack of awareness of the benefits of an IP-based security system. Most of the SMBs have an issue trusting their vendors because they feel that because cloud technologies are used, the data will be accessible to all, which can be a threat according to them. Secondly, they believe that since analog devices are cheaper compared to IP-based security systems, they are more cost effective, which is completely misconstrued as IP-based security are more cost effective as they are a one-time investment.
Role of Channel Partners in surveillance market
The role of channel partners is the most critical when it comes to successful implementation of video surveillance. Channel partners are the face of manufacturers when it comes to the customers. Surveillance business as such is driven by system integrators/ channel partners. The need of the business is required to provide a complete solution to the end customer. System Integration partners brings that capability where they provide a single window to the end consumer and stitch all the pieces of customer requirements via single solution. With the advancement of technology, new functions and applications are introduced in the market at a high pace. The partner should position a particular product to the consumer. Partners should understand the requirements of the consumer and offer solutions which are scalable in the near future.
Any channel partner who understands how to capture requirements of the customer and design a complete solution from cabling to selecting right cameras, video recorders, bandwidth, storage and servers, should be ready to dip toes in the surveillance market. In general, the ideal partner for taking up this business without much struggle would be people into networking as the decision of video surveillance is taken at the time of finalizing the cabling. Moreover, partners dealing in fire systems, access control, etc. should find it easier due to integration he can offer, along with making it simpler for the customer to deal with one vendor. Channel partners are crucial for any business to make them grow in the industry. Keeping a note of this, K Bhaskhar, Vice-President, Business Imaging Solutions (BIS), Canon India shares, “Our partners are the strongest linkage between us and our customers. We have very strong channel ecosystem & currently have approximately 200 channel partners covering length & breadth of India.”
However, with the increasing online commerce, the role of channel partners is changing. Looking at the latest scenario, Ravichandran, Branch Manager, Octal Networks – Chennai opines, “Channel partners will need to align themselves with the changing dynamics of the industry. As of now, a few partners are piloting the idea to resell their security products online. Get involved with a local trade association, business owner group, or networking group. Once involved with these business groups, look for like-minded business owners you resonate with and Attend business owner workshops and events. Cultivate the mentors and advisor team to give you objective feedback.” According to industry experts, IP surveillance in India has enhanced its reach into verticals such as government, SMBs and SOHOs. This market will continue to grow roughly at 25-30% year on year as organizations and authorities understand the advantages that IP-based surveillance brings with it. “The primary requirement for the partner entering surveillance business is to understand that this is not a business of selling product but of providing solution. Therefore besides the sales set up the partner needs to have resources for implementation and support”, opines Manoj Khadkikar –Head- Channels Groups and Solution – Zicom Electronic Security.
Benefits for a partner
As this industry is growing rapidly a partner can take advantage and can grow his business continuously. Because of the nature of this industry requiring service, the returns that a partner can expect are manifold multiple or the returns the partners get in other industries like IT & Telecom. In general, an ideal partner needs to have:-
- Clear understanding of various technologies
- Focus on all aspects of security instead of only CCTV
- Technical presales and post sales resources
- Focus on selling services as a key differentiator.
Future Hold for Surveillance
As the awareness of the benefits of IP-Based systems spreads, features of surveillance products will increase, and technology will evolve. According to industry experts, IP surveillance in India has enhanced its reach into verticals such as government, SMBs and SOHOs. This market will continue to grow roughly at 25-30% year on year as organizations and authorities understand the advantages that IP-based surveillance brings with it.
According to 6W research, The market for IP surveillance is forecast to reach $359.6 million, where the overall video surveillance market is expected to touch less than $1.5 billion by 2022.